P R O P E R T Y M A R K E T U P DAT E
CORELOGIC’S HOME VALUE INDEX CONTINUES TO LOSE STEAM AS THE CASE FOR HIGHER INTEREST RATES MOUNT The residential property markets of Australia’s two largest cities have hit their first quarter of negative territory since the extended lockdowns of 2020.
BY T I M L AW L E S S , H E A D O F R E S E A R C H , CO R E LO G I C
Hobart also recorded a negative
year at 8.5%, slowing to 5.7% over
monthly change (-0.3%), the city’s
the most recent three month
first monthly fall in 22 months.
period. Similarly, Adelaide moved
CoreLogic’s Research Director Tim Lawless says the weakening state of the market has taken the rolling
through a peak in the trend rate of growth in January at 7.4%, reducing to 5.4% in April.
quarterly trend into negative territory
Perth and Darwin are the
across Sydney and Melbourne for
exceptions, where the rolling
the first time since these cities were
quarterly trend has gathered some
in the midst of extended lockdowns
steam since late last year. Perth
national Home Value Index (HVI)
in mid-to-late 2020.
housing values were up 2.4% over
continue to lose steam through
Demonstrating the diversity in
April. Housing values are still rising
housing conditions across the
at the national level, however
broad regions of Australia, half
the 0.6% monthly rate of growth
of the capitals are still recording
is the lowest reading since
a monthly growth rate above 1%.
“A rebound in migration rates as
October 2020.
Adelaide, at 1.9% growth in April,
state and international borders
Sydney and Melbourne, which have
led the pace of capital gains,
re-opened could partially explain
followed by Brisbane (1.7%),
the renewed exuberance, along
were the main drag on the headline
Canberra (1.3%) and Perth (1.1%).
with persistently low advertised
growth rates. Sydney housing values
Although monthly growth rates
recorded the third consecutive
remain high in these markets,
month-on-month decline, down
Mr Lawless warns the trend rate
0.2%, while Melbourne values were
of growth is easing in most of
flat (-0.04% when taken out to the
these areas as well. Based on
second decimal place). Technically
rolling quarterly change, Brisbane
values are down over three of the
dwellings moved through a peak
past five months in Melbourne.
rate of growth in December last
Sydney and Melbourne’s market slowdown has seen CoreLogic’s
the heaviest weighting in the HVI,
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the three months ending April compared with a recent lull through late last year when the quarterly trend fell to just 0.4%.
stock levels and strong economic conditions,” Mr Lawless says.
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